Stocks advanced on the back of a strong run on Wall Street, with Treasuries steady amid expectations for peaking interest rates.
“The inflation data is likely to reinforce the weaker-than-expected PMI figures last week, which continue to point to low-for-longer growth conditions,” said Jun Rong Yeap, a market strategist at IG Asia Pte. “Today’s data seems to reinforce the view that more needs to be done.” The apparent calm was helped along by swaps traders pricing in almost no chance of an interest-rate increase in December, and no further hikes next year. Those forecasts come ahead of comments from central bankers.
“His comments are anticipated to shape the narrative for the year’s final FOMC meeting next month,” Philip Wee, a strategist at DBS Bank, wrote in a note. Wee expects Powell to “emphasize the irreplaceable role of interest rate policy to achieve its dual mandate.”